CD Ladder Calculator
A CD ladder splits savings across several certificates of deposit that mature at different times. As each one matures, its money comes back on a regular schedule.
- Free
- Works offline after your first visit
- Saves on this device
- No sign-up
- Updated
How it works
Divide the total by the number of rungs to get the amount in each one. This calculator sets one rung to mature each year, the first one year from now.
Each rung earns interest for its own number of years at the yearly rate entered, compounded once a year. The interest figure adds up the earnings from every rung. Rates change, so use the rate offered today.
Worked example
Splitting $50,000.00 into 5 rungs gives $10,000 in each. At 4.5% a year, the whole ladder earns $7,169 in interest over its full term.
Questions
What happens when a rung matures?
You receive its money and its interest. You can spend it, or open a new rung at the far end of the ladder to keep the schedule going.
Is the rate the same for every term?
Often not. Longer certificates can pay a different rate. This calculator uses one rate for every rung, so you can try different rates to see the effect.
Are there penalties for early withdrawal?
Often yes. Taking money out before a certificate matures can cost some interest, so check the terms of each one.
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